Ordinance or Law
Ordinance or Law coverage is important for all types of properties and particularly for both larger and older buildings. A property owner may incur property damage to a portion of the building that requires replacing the undamaged portion of the building because it has been rendered unusable or condemned by city ordinance. There are also costs associated with demolition and cleanup.
Additionally, if the building is older and has been damaged by fire or another covered loss, it may not be up to code. There will be increased construction costs to update the property to comply with local ordinances or laws.
Our City programs include the following Ordinance or Law coverage
- A – Full limit (covers the value of the undamaged portion of a damaged building)
- B – 25% of building limit or minimum of $400,000 (demolition costs relating to the undamaged portion of the building or structure)
- C – 25% of building limit or minimum of $400,000 (increased cost of construction due to updated codes)
Backup of Sewers and Drains Included
Over time, main sewer lines can deteriorate, crack, collapse, or become obstructed. The landlord or property owner owns and maintains the main sewer line, including any portion of the line that extends into the street or public right of way. Water backup and sewage backup coverage are not automatically included in all insurance policies. Our program includes coverage for losses related to this exposure up to the TIV limit.
Equipment Breakdown/Building Machinery, Heating/Cooling Systems, Miscellaneous Electrical Apparatus
Building equipment is subjected to risks that other types of property are not, such as power surges, electrical short circuits, and mechanical forces. If equipment fails, the costs to the property owner can be significant.
Assume the air conditioning system in a 75-unit apartment building is broken. There is the cost of replacing the system (or repairing it if possible), the possibility of additional expenses to limit the loss or expedite restoration, and the loss of business income.
Our policy includes coverage for equipment breakdown.
Minimum All Other Perils (AOP Deductible)
- $1,000 with $2,500 water damage deductible; AOP deductible options up to $25,000
Terrorism (TRIA) Coverage Included
Provides coverage for damaged or destroyed property — including buildings, equipment, furnishings, and inventory. Losses are covered by a terrorism insurance policy only if the U.S. Department of the Treasury officially certifies an event as an act of terrorism.
Download our free eBook to continue reading about City Insurance Commercial Liability coverages.
